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The Archer Factor-Analysis Compensation System is a valid and reliable system that:

THE MISSION OF THE COMPENSATION/PAY CLASSIFICATION STUDY:

To provide the client with a dynamic and progressive compensation system, tailored specifically to the needs of the organization, devised as both a strategic and tactical construct, formulated to inspire commitment to the mission of the organization, oriented to the efficient and effective delivery of services to the customers of the organization, designed to influence the effective and efficient achievement of the organization's goals and objectives, created to ensure fairness and to eliminate discrimination, structured to cultivate the knowledge, skills and abilities of the organization's employees, organized to optimize employee retention and loyalty and forged to provide competitive attraction with regard to the recruiting and hiring of new employees.

To provide the client with a flexible, adaptable, responsive and proactive system that encourages achievement, espouses equity, minimizes conflict and dysfunction, promotes a culture that pursues excellence, shuns complacency and eschews mediocrity. In the behavioral sense, the applications of the system will serve to reinforce efficient, effective and loyal employee behavior and it will serve to extinguish inefficient, ineffective and disloyal employee behavior. In the developmental sense, it will serve to encourage the growth of the knowledge, skills and abilities among the members of the workforce.

To provide the client with assistance in developing a compensation philosophy that reinforces the mission of the client's organization in accordance with a carefully considered set of priorities, all within the context of meeting the needs of its customers, the maintenance of operational effectiveness, and the growth of stockholder equity.

To provide the client with a valid and reliable job analysis and job evaluation system that allows every to be evaluated against the same set of universal compensable factors. The Archer Factor-Analysis Compensation System includes three universal job function factors (information processing, people relationships and technology application); nine universal job skill factors (vocabulary skill, quantitative skill, procedural and process judgment skill, contingency judgment skill, physical adroitness skill, physical strength skill, job sensory skill, experience derived job skill, and academically derived job skill); three universal job responsibility factors (supervisory control, horizon planning and budgetary allocation) and one universal environment factor (working conditions). Note that each of the sixteen universal compensable factors just listed has eighteen levels or degrees of complexity associated with it. The selection of the appropriate level of complexity for each of the compensable factors associated with a particular job is essential to the determination of the relative worth of the particular job (internal equity).

To provide the client with a valid and reliable wage and salary survey in order to secure data from the labor market(s) in which the client competes for its labor supply. The collection and compilation of wage and salary survey data is essential to the determination of the competitive worth of each job (external equity).

To provide the client with a valid and reliable pay structure derived from the statistical integration of the job evaluation data (internal equity) and the wage and salary survey data (external equity) that meets the requisites of Title VII of the Civil Rights Act of 1964 as amended in 1991, the requisites of the Equal Pay Act of 1963, the requisites of the Americans with Disabilities Act of 1991. And other applicable statutes, legislation and presidential orders.

To provide the client with a valid and reliable pay structure that can support job based pay, skill based pay, knowledge based pay, competency-based pay, traditional banding, broad banding, multiple banding, step systems, gain sharing, and other alternative reward systems.

The Study Process for the Archer Factor-Analysis Compensation System